Business Secretary Vince Cable has said the idea that the UK government is planning to impose lower pay rates on public sector workers across Wales is a 'wild exaggeration' and that he would only support 'limited local arrangements'.
Mr Cable is visiting Welsh companies. It's been estimated that private sector workers in Wales receive 18% less than if they were in the public sector. The Conservative Chancellor, George Osborne, has asked NHS and teachers' pay review bodies to look at the the idea of regional variations in pay
The Chancellor has also told government departments that they can consider regional pay for their civil servants. But the Business Secretary, who's a Liberal Democrat, says that the UK coalition government has reached absolutely no agreement on regional pay at the moment.